President Donald Trump has announced a 90-day pause on his reciprocal tariffs for most countries, while increasing the tariff on China to 125%. The global baseline tariff will remain at 10% during this period, effective immediately.
"Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately," Trump wrote on Truth Social Thursday. "At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable. Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Thank you for your attention to this matter!"
Trump later told reporters at the White House that he paused the imposition of higher tariffs on many countries because people “were getting a little bit yippy.”
“Well, I thought that people were jumping a little bit out of line,” he said while standing with auto racing champions. “They were getting yippy, you know, they were getting a little bit yippy, a little bit afraid, unlike these champions, because we have a big job to do.”
“No other president would have done what I did. No other president,” he said. “And it had to be done.”
Trump later said, “You have to have flexibility” in policies.
Earlier Thursday, Treasury Secretary Scott Bessent said that the decision to pause the tariffs, was part of Trump's strategy all along and that the U.S. is now in a stronger negotiating position. He also noted that the market reaction was not the primary factor in the decision.
White House Press Secretary Karoline Leavitt also pushed back against the notion that Trump was backing down due to market pressure, stating that the pause was a result of countries refraining from retaliatory measures and showing willingness to negotiate.
Hours before he announced the pause, he urged Americans in a Truth Social post to "BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!"
The 90-day Pause applies to most countries, allowing for negotiations. Over 75 countries have contacted the U.S. to start talks. The universal tariff rate will be set at 10% for the 90-day period.
Canada and Mexico will still face 25% fentanyl-related tariffs, and separate industry-specific tariffs on steel, aluminum, and autos remain unchanged.
Global markets surged following the announcement, with the S&P 500 jumping over 9.5%.
